The President said a plan would be announced in the coming weeks.
- U.S. President Donald Trump indicated that the proposed framework would ensure that Americans do not bear higher electricity costs linked to the rapid data center buildout.
- While tech companies have pushed back on claims that data centers are driving up electricity costs, consumer backlash is growing and the issue has emerged as a political flashpoint ahead of the midterm elections.
- Trump said Microsoft, the first of the tech companies working on the plan, will make ‘major changes beginning this week.’
U.S. President Donald Trump said on Monday that his administration is working with Microsoft and other technology giants on a plan to ensure that the high power costs of running data centers do not spill into household utility bills.
“I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks,” Trump said in a Truth Social post in the evening.
Whom Does It Impact?
Details of the plan were not disclosed; however, the President said his team is working with Microsoft, “which will make major changes beginning this week to ensure that Americans don’t ‘pick up the tab’ for their power consumption.”
Alphabet, Amazon, and Oracle are among the major data center operators, also known as hypercalers, in the U.S., while companies like Meta Platforms and OpenAI also rent substantial server space – all of them have committed to increasing their already record investments in the area.
The Flashpoint
The breakneck build-out of data centers to support AI development is sharply raising electricity demand and, in some regions, pushing power prices higher.
Although data center companies, such as Amazon, have argued that such is not the case, a Bloomberg analysis from September showed that wholesale electricity costs rose as much as 267% in areas near data centers compared to five years ago.
Soaring electricity bills have emerged as a polling issue ahead of the U.S. midterm elections later this year, with Democrats accusing the Trump administration of failing to address the issue. Trump hit back in his Monday post, saying that electricity prices rose by over 30% under his predecessor Joe Biden.
While Trump has championed data centers in the country’s AI race with China – including signing an executive order to significantly ease and accelerate the approval process for large-scale AI data centers and their associated energy infrastructure – the resulting surge in utility bills might threaten the Republican majority in Congress.
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